Bill Text: CA SB1460 | 2023-2024 | Regular Session | Amended

California Senate Bill 1460

Bill Title: Broadband Labor Standards Act: broadband deployment projects: model contract terms: memorandum of understanding.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-04-25 - Read second time and amended. Re-referred to Com. on APPR. [SB1460 Detail]

Download: California-2023-SB1460-Amended.html

Amended IN Senate April 25, 2024

Amended IN Senate March 20, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill

No. 1460

Introduced by Senator Durazo

February 16, 2024

An act to add ~~Chapter 6.10 (commencing with Section 7000) to Part 1 of Division 2 of the Public Contract Code, relating to public contracts.~~ Section 14018 to the Unemployment Insurance Code, relating to broadband.

LEGISLATIVE COUNSEL'S DIGEST

SB 1460, as amended, Durazo. Broadband Labor Standards Act: ~~public contracts: broadband labor standards.~~ broadband deployment projects: model contract terms: memorandum of understanding.

Existing law establishes the California Broadband Council in state government for the purpose of promoting broadband deployment in unserved and underserved areas of the state and broadband adoption throughout the state and imposes specified duties on the council relating to that purpose, including taking actions to ensure that state agencies are coordinating efforts and resources to promote broadband deployment and adoption. Existing law also establishes the California Workforce Development Board as the body responsible for assisting the Governor in the development, oversight, and continuous improvement of California’s workforce investment system and the alignment of the education and workforce investment systems to the needs of the 21st century economy and workforce.
This bill would enact the Broadband Labor Standards Act. The bill would require the board, by January 1, 2026, to convene relevant stakeholders and state agencies to develop model contract terms for broadband deployment projects that are awarded grants by state agencies and to provide a recommendation on a memorandum of understanding between the board and the Public Utilities Commission to enable development of high road job creation on broadband deployment projects and expand access to those jobs, as specified. By July 1, 2026, the bill would require the board to post the model contract terms on the board’s internet website and submit a report to the Legislature on specified matters, including a summary of the discussions with relevant stakeholders and state agencies to develop the model contract terms.
(1)Existing law establishes specified procedures governing contracts between public entities and their contractors and subcontractors. Existing law also establishes the Department of Industrial Relations, Department of Technology, Department of Transportation, Public Utilities Commission, and California Workforce Development Board within the state government and sets forth their regulatory duties.
Existing law expresses the intent of the Legislature to develop procurement models in alignment with initiatives to enhance the state’s training and access pipeline for quality jobs and the application of community benefits on infrastructure and manufacturing investments that are federally funded, as specified. In connection with that legislative intent, existing law requires the Labor and Workforce Development Agency, Government Operations Agency, and Transportation Agency to convene relevant stakeholders to provide input on recommendations to establish material terms to be included as a material part of a contract.
This bill would enact the Broadband Labor Standards Act. Under that act, the bill would require any state agency that constructs a broadband project, as defined, with federal funds received by the state on or after July 1, 2025, as specified, and prescribed state entities, including the Department of Technology, to collaboratively develop and establish specified contract terms and requirements, including contract provisions on training and certifications under penalty of perjury regarding compliance with certain labor laws, to be included in their public contracts or subcontracts and procurement processes relating to the construction of those projects. The bill would require these state agencies to consult with relevant stakeholders in developing and establishing contract requirements, as specified, and by March 1, 2025, to submit a report to the Legislature on stakeholder involvement. By March 30, 2025, the bill would require these state agencies to develop and establish the contract requirements and post that information on specified internet websites. For any contract related to the construction of a broadband project that is federally funded, as specified, the bill would require a state agency to incorporate these contract terms and requirements into the state agency’s procurement processes and contracts entered into, amended, or renewed beginning on July 1, 2025, as specified.
~~By requiring contractors and subcontractors to make certain certifications under penalty of perjury, this bill would expand the crime of perjury and impose a state-mandated local program.~~
~~This bill would state that its provisions are severable.~~
(2)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
~~This bill would provide that no reimbursement is required by this act for a specified reason.~~

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: ~~YES~~NO

The people of the State of California do enact as follows:

SECTION 1.

Section 14018 is added to the Unemployment Insurance Code, to read:

14018.
(a) This section shall be known, and may be cited, as the Broadband Labor Standards Act.
(b) By January 1, 2026, the board shall convene relevant stakeholders and state agencies, including, but not limited to, recognized labor unions, the Public Utilities Commission, and the Department of Industrial Relations, to do both of the following:
(1) (A) Develop model contract terms, as specified in subparagraph (B), for broadband deployment projects that are awarded grants by state agencies.
(B) The contract terms developed pursuant to subparagraph (A) shall serve to increase the utilization of recognized labor unions’ apprenticeships in the telecommunications sector.
(2) (A) Provide a recommendation on a memorandum of understanding between the board and the Public Utilities Commission that would enable the development of high road job creation on broadband deployment projects and expand access to those jobs for priority populations through high-quality education and training.
(B) The recommendation specified in subparagraph (A) shall ensure that the state has the workforce and industry-based training partnerships necessary to meet its broadband goals, while building pathways into the middle class and beyond for Californians who have been historically excluded from quality jobs and economic prosperity.
(c) By July 1, 2026, the board shall do both of the following:
(1) Post the contract terms developed pursuant to paragraph (1) of subdivision (b) on the board’s internet website.
(2) (A) Submit a report to the Legislature, pursuant to Section 9795 of the Government Code, which includes both of the following:
(i) A summary of discussions with relevant stakeholders and state agencies to develop model contract terms pursuant to paragraph (1) of subdivision (b).
(ii) The recommendation from relevant stakeholders and state agencies on a memorandum of understanding pursuant to paragraph (2) of subdivision (b).
(B) The requirement for submitting a report imposed under subparagraph (A) is inoperative on July 1, 2030, pursuant to Section 10231.5 of the Government Code.

SECTION 1.Chapter 6.10 (commencing with Section 7000) is added to Part 1 of Division 2 of the Public Contract Code, to read:
6.10.Broadband Labor Standards Act
7000.
~~This chapter shall be known, and may be cited, as the Broadband Labor Standards Act.~~
7000.1.
~~For the purposes of this chapter, the following definitions apply:~~
~~(a)“Broadband project” means a middle-mile, last-mile, or other broadband project.~~
(b)“Contract” means a state contract or subcontract related to the construction of a broadband project that is funded by federal funds received by the state on or after July 1, 2025, and allocated by the Public Utilities Commission.
7000.2.
(a)By March 30, 2025, the Department of Industrial Relations, the Department of Technology, the Department of Transportation, the Public Utilities Commission, the California Workforce Development Board, and any state agency that constructs a broadband project shall collaboratively develop and establish contract terms and requirements, as specified in subdivision (b), to be included in their public contracts or subcontracts and procurement processes.
~~(b)(1)A contract shall include a material contract provision on mandatory contractor and subcontractor training related to Title 8 of the California Code of Regulations.~~
~~(2)A contractor and subcontractor shall certify that they shall comply with both of the following:~~
~~(A)All applicable federal, state, and local laws pertaining to paid sick leave, including any antiretaliation provisions contained in those laws.~~
~~(B)The federal Americans with Disabilities Act of 1990 (Public Law 101-336; 42 U.S.C. Sec. 12101 et seq.) and all regulations thereunder.~~
~~(3)A contractor and subcontractor shall certify that they shall not misclassify any individual performing work to fulfill the contract as an independent contractor.~~
~~(4)A contractor and subcontractor shall provide information on all of the following:~~
~~(A)The history of compliance with applicable federal, state, and local labor laws.~~
~~(B)The number of individuals the contractor or subcontractor anticipates hiring to perform work to fulfill the contract.~~
~~(C)For each job title, the minimum compensation and benefits paid to an employee who performs work to fulfill the contract.~~
~~(D)A plan to recruit, hire, and train individuals who face barriers to employment or underrepresented individuals to perform work to fulfill the contract.~~
~~(E)A plan to prioritize hiring individuals within the local community in which the project is located to perform work to fulfill the contract.~~
~~(F)A plan to hire individuals from an apprenticeship program to perform work to fulfill the contract.~~
(c)(1)The state agencies described in subdivision (a) shall consult with relevant stakeholders, including, but not limited to, recognized labor unions, in developing and establishing contract terms and requirements, as specified in subdivision (b).
~~(2)By March 1, 2025, the state agencies described in subdivision (a) shall submit a report to the Legislature on both of the following pursuant to Section 9795 of the Government Code:~~
~~(A)A list of stakeholders the state agencies consulted with pursuant to paragraph (1) and the number of times state agencies consulted with these stakeholders.~~
~~(B)A description of the consultations pursuant to paragraph (1).~~
~~(3)The requirement for submitting a report imposed under paragraph (2) is inoperative on March 1, 2029, pursuant to Section 10231.5 of the Government Code.~~
~~(d)By March 30, 2025, the state agencies described in subdivision (a) shall post the contract terms and requirements developed and established pursuant to subdivision (b) on their internet websites.~~
7000.3.
(a)For any contract, a state agency shall incorporate contract terms and requirements that comply with subdivision (b) of Section 7000.2 into the state agency’s procurement processes and contracts entered into, amended, or renewed for those broadband projects.
(b)A state agency that enters into a contract may incorporate higher standards than the terms and requirements described in subdivision (b) of Section 7000.2 into the state agency’s procurement processes and contracts for broadband projects.
7000.4.
The provisions of this chapter are severable. If any provision of this chapter or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
SEC. 2.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.